RedEaredSlider writes: YouTube could become the latest to offer a movie rental service, challenging streaming sites such as Netflix.

Google is lining up deals with major Hollywood studios in order to launch the service. An anonymous executive at a studio that has signed on said Sony Pictures Entertainment, Warner Brothers, Lionsgate and Universal have all licensed their movies to the service. Not everyone is on board — Paramount, Fox and Disney declined to join.

Although netflix consistently defies all the forecasts for its impending doom it seems to me that if youtube manages to get this going it will be the final nail in netflix's coffin. Just having the mail-dvd service won't be enough (although I tend to use this much more than the streaming option but I am sure I am the exception)